Iran's CB Chief: Higher Interest Rates Imperative

The governor of the Central Bank of Iran reiterated that increasing interest rates is a compulsion.
Addressing senior bankers, Mohammad Reza Farzin asked banks to follow rules on the cap on deposit rates and added that "law-abidance of banks is crucial for maintaining discipline in the banking sector," CBI website reported Thursday. 
Earlier this month local media reports said some state banks had started offering higher rates on deposits. A report by EcoIran Web TV said some state-owned banks had raised interest by up to 25%. Both state and private banks were charging between 24%-25% on loans from the previous 18%.
The Money and Credit Council (MCC), the top decision-making body of financial and monetary markets, is expected to endorse the higher rates. Former CBI chief Ali Salehabadi in the final days in office last month had spoken about the possibility of higher rates.